The market analysis firm said the metro test equipment market generated revenues worth $565.8 million in 2002 and will likely reach $836.4 million by 2009.

"The significance of data transmission in metro networks is increasing, and the current network infrastructure needs to transmit data traffic more efficiently," said Frost & Sullivan Research Analyst Jessy Cavazos. "This has led to the emergence of an array of new network technologies, such as Gigabit Ethernet, next-generation synchronous optical network and coarse wavelength division multiplexing."

Many of these technologies will co-exist during the next few years, before one actually takes over, and MAN test equipment vendors need to assess the potential of each network technology that is under research to decide on the development of appropriate testing solutions, the company said.

Many end-user companies have recently filed for bankruptcy, which has shrunk the pool of potential customers for the test equipment community, and increasing competition is forcing vendors to cut back prices despite their shrinking profits, according to the report.

"Going forward, vendors that provide comprehensive, flexible and upgradable testing solutions are more likely to increase their market presence in the metro space," Cavazos said.

For information about the World Metro Area Network (MAN) Test Equipment Market Report A330, visit: www.frost.com